diff --git a/internal/controller/environmentrequest_controller.go b/internal/controller/environmentrequest_controller.go
index 5cff0b00..d82de2f0 100644
--- a/internal/controller/environmentrequest_controller.go
+++ b/internal/controller/environmentrequest_controller.go
@@ -116,20 +116,34 @@ func (r *EnvironmentRequestReconciler) reconcile(ctx context.Context, environmen
 	logger.V(1).Info("environment provider count", "active", len(environmentProviders.activeJobs), "successful", len(environmentProviders.successfulJobs), "failed", len(environmentProviders.failedJobs))
 
 	// Check providers availability
-	// TODO: Update status
 	providers := etosv1alpha1.Providers{
 		IUT:            environmentrequest.Spec.Providers.IUT.ID,
 		ExecutionSpace: environmentrequest.Spec.Providers.ExecutionSpace.ID,
 		LogArea:        environmentrequest.Spec.Providers.LogArea.ID,
 	}
 	if err := checkProviders(ctx, r, environmentrequest.Namespace, providers); err != nil {
-		return err
+		meta.SetStatusCondition(&environmentrequest.Status.Conditions,
+			metav1.Condition{
+				Status:  metav1.ConditionFalse,
+				Type:    StatusReady,
+				Message: fmt.Sprintf("Provider check failed: %s", err.Error()),
+				Reason:  "Failed",
+			})
+		logger.Error(err, "Error occurred while checking provider status")
+		return r.Status().Update(ctx, environmentrequest)
 	}
 
 	// Reconcile environment provider
-	// TODO Update status
 	if err := r.reconcileEnvironmentProvider(ctx, environmentProviders, environmentrequest); err != nil {
-		return err
+		meta.SetStatusCondition(&environmentrequest.Status.Conditions,
+			metav1.Condition{
+				Status:  metav1.ConditionFalse,
+				Type:    StatusReady,
+				Message: fmt.Sprintf("Environment provider reconciliation failed: %s", err.Error()),
+				Reason:  "Failed",
+			})
+		logger.Error(err, "Error occurred while reconciling environment provider")
+		return r.Status().Update(ctx, environmentrequest)
 	}
 
 	if environmentProviders.failed() {